The development of information technology has a positive influence over distance education. For instance, it gives birth to E-learning, a novel and convenient mode of online learning. However, the existing E-learning platforms are often in need of heavy infrastructural investment. To solve the problem, this paper introduces the architecture of elastic cloud computing to E-learning, and proposes a new load balancing algorithm based on elastic cloud computing. Then, it establishes a five-layer elastic cloud-based E-learning model for distance education. The subsequent evaluation demonstrates that the model can effectively respond to the dynamic load imposed on by numerous users, and maximize the revenue of the E-learning platform.